BSE has introduced new guidelines for small and medium enterprises (SMEs) choosing to move from its SME platform to the main board. The fresh norms will be effective from January 1, 2024, according to a circular released by BSE.
A total of 464 firms have been listed on BSE's SME platform, which was set up in 2012 to help these enterprises raise equity capital and grow in a cost-effective manner. According to the bourse, 181 SMEs have migrated to the main board so far.
A listing on the SME platform gives the firm more credibility and enhanced financial status leading to demand in the company's shares and higher valuation of the company, BSE says. NSE also has a similar platform dedicated to SMEs.
New BSE guidelines for SMEs
The applicant SME must have at least Rs 15 crore net worth for the preceding two financial years.
The firm must be listed on BSE's SME platform for at least three years
The SME must have 250 public shareholders before migrating to the main board
The SME firm must have a positive operating profit for at least any two out of three financial years
The company must have a positive profit after tax (PAT) in the immediate financial year of making the migration application
The paid-up equity capital of the SME must be more than Rs 10 crore
The market capitalization of the company must be at least Rs 25 crore
The applicant firm should not have received any winding-up petition submitted to the National Company Law Tribunal (NCLT)
The firm and its promoters should not be facing any material regulatory action such as trade suspension by any stock exchange in the past three years
The SME, its promoters and its subsidiary should not be debarred by Sebi
